The Shanghai Composite Index has risen for two consecutive sessions, accumulating nearly 50 points or 1.7 percent in gains, and now stands just above the 2,990 mark. Anticipation is high for further support on Tuesday. Global forecasts for Asian markets suggest minimal changes ahead of significant U.S. employment data expected later in the week. Both European and U.S. markets have recently seen slight increases, and similar trends are projected for Asian markets.
On Monday, the Shanghai Composite Index closed modestly higher, primarily driven by gains in financial and property sectors. The index rose by 27.33 points or 0.92 percent, finishing at 2,994.73 within a trading range between 2,961.86 and 2,996.41. Notable performers included Industrial and Commercial Bank of China and Jiangxi Copper, both surging by 2.11 percent. Agricultural Bank of China increased by 1.83 percent, China Construction Bank by 2.30 percent, and China Merchants Bank by 0.50 percent. Significant gains were also observed in Aluminum Corp of China (Chalco) which soared by 3.67 percent, PetroChina rising by 1.07 percent, Gemdale skyrocketing by 7.06 percent, Poly Developments by 6.28 percent, and China Vanke by 5.19 percent.
Wall Street's performance remains cautiously optimistic. On Monday, U.S. markets opened slightly higher, maintaining a steady trajectory before closing positively.
The Dow Jones Industrial Average added 50.66 points or 0.13 percent to end at 39,169.52. The NASDAQ climbed 146.70 points or 0.83 percent, concluding at 17,879.30, while the S&P 500 gained 14.61 points or 0.27 percent to settle at 5,475.09.
Wall Street's tepid performance reflects traders’ anticipation of the Labor Department's highly anticipated monthly jobs report, due on Friday. The report is expected to indicate a slowdown in job growth for June, potentially influencing future interest rate projections.
Additionally, market participants are likely to remain cautious ahead of Federal Reserve Chair Jerome Powell's remarks on Tuesday and the Independence Day holiday on Thursday.
On the U.S. economic front, the Institute for Supply Management reported a faster-than-expected contraction in manufacturing activity for June. Simultaneously, the Commerce Department noted a slight decline in U.S. construction spending for May.
Oil prices experienced a significant increase on Monday due to anticipated higher demand, ongoing supply concerns, and production cuts by OPEC. West Texas Intermediate Crude oil futures closed up by $1.84 or approximately 2.2 percent, settling at $83.38 a barrel.
